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WACC Cost of common equity ( rs ) 1 7 . 0 0 % Before - tax cost of debt ( rd ) 1 0

WACC
Cost of common equity (rs)17.00%
Before-tax cost of debt (rd)10.00%
Marginal tax rate (T)40.00%
Common shares outstanding 576
Current stock price $4.00
Long-term debt sells at par value Yes
Balance Sheet:
Assets Liabilities and Equity
Cash $120.00 Accounts payable and accruals $10.00
Account receivable $240.00 Short-term debt $43.00
Inventories $360.00 Long-term debt $1,050.00
Plant and equipment, net $2,160.00 Common equity $1,777.00
Total assets $2,880.00 Total liabilities and equity $2,880.00
Formulas
Market value of total debt #N/A
Market value of common equity #N/A
Total capital #N/A
Percentage of debt #N/A
Percentage of common equity #N/A
After-tax cost of debt #N/A
Weighted Average Cost of Capital (WACC) #N/A

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